Home Loan Balance Transfer FAQs
What is Home Loan Balance Transfer?
Home loan balance transfer is a process of transferring your outstanding home loan amount from one bank to another. This is done mainly to lower the rates of interest or avail better service from the bank willing to takeover the home loan. Home loan transfer is also known as refinancing and home loan take over.
When should I consider home loan transfer?
Home loan transfer make financial sense when:
- You have a loan with a rate of interest higher than current market rates;
- You have a loan with a floating rate of interest and you want to reduce risk by going in for a fixed rate of interest; and
- You want to improve your cash flow by lowering your EMIs.
When should I not transfer my home loan?
It is not advisable to transfer your home loan when:
- You have been repaying the loan for a long time;
- Your current bank has a prepayment penalty; and
- You are planning to move out of the property in the near future.
Will a prepayment penalty affect my refinance?
Most banks today do not have a prepayment penalty. If your bank has it, then you can ask your new lending bank to take it into account. However, whether the bank has it or not, depends entirely on a case-to-case basis.
Can I refinance more than the pending amount of my loan?
No, you cannot.
Should I transfer my home loan if the current rate of interest does not dip significantly?
The more you stick to your current loan, the higher are the chances of the market rate of interest dipping lower thus saving you more money.
Will the bank I transfer my home loan to consider the evaluation of my eligibility done by the previous bank?
No. Any bank you transfer your present home loan to shall judge your eligibility for a loan starting from the first step, from you filing an application, that is.
When I transfer my home loan, will income tax deduction certificates be issued by the bank in the name of all co-applicants of the primary loan?
As per Income Tax rules, only one certificate can be issued for a Home Loan hence one certificate will be issued which will have names of all the applicants.
How much time will a bank take to transfer my loan?
Because a home loan transfer process is repeated all over again by the bank the loan is transferred to, it might take 15-20 days for the loan to be transferred.
If my credit rating has dropped since I availed the primary loan, will it affect my loan transfer?
Yes. Because the bank you transfer the loan to starts the loan approval process right from the beginning, a low credit rating will impact your chances negatively.
Which bank is best for home loan balance transfer?
|Home Loan Balance Transfer Provider||Home Loan Transfer Rates|
|SBI Home Loan Transfer||8.75%|
|HDFC Home Loan Transfer||8.75%|
|ICICI Bank Home Loan Transfer||9.05%|
|Axis Bank Home Loan Transfer||8.90%|
|PNB Housing Loan Transfer||9.10%|
|Bank of Baroda Home Loan Transfer||8.65%|
|LIC Housing Finance Loan Transfer||8.70%|
|Indiabulls Housing Finance Loan Transfer||9.25%|
|Citibank Home Loan Balance Transfer||8.80%|
|DBS Bank Home Loan Balance Transfer||9.65%|
|DHFL Home Loan Balance Transfer||8.70%|
|Kotak Bank Home Loan Balance Transfer||8.90%|
|PNB Home Loan Balance Transfer||8.65%|